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November sales for CAMPI, TMA top 35K units

Still number one: Toyota Motor Philippines Corp. Chairman Alfred V. Ty speaks at a recent luncheon with members of the media. — PHOTO BY KAP MACEDA AGUILA

THE YEAR’s automotive sales numbers continue to exhibit robust numbers — steadily recovering from the dire economic effects of the COVID-19 pandemic, while still dampened by an ongoing semiconductor shortage and parts issue. The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) revealed in a joint report that total new motor vehicle sales for November reached 35,037 units — representing 32.4% growth versus the 26,456 units sold in the same month in 2021.

Expressed CAMPI President Atty. Rommel Gutierrez in a release: “Auto sales performance has been improving, recording double-digit growths for nine successive months. With the continued growing consumer demand for new motor vehicles, the industry is convinced and confident in exceeding its sales forecast of 336,000 this year.”

Year to date (YTD), CAMPI and TMA member companies have registered total consolidated sales of 315,337 units — 31% more than the 240,642 sold over the same period in 2021. Of note, YTD passenger car sales have grown by a marginal 0.6% (77,283 vs. 76,813), commercial vehicles by a hefty 45.3% (238,054 vs. 163,829), and light commercial vehicles by an even bigger 48.5% (187,101 vs. 125,981).

Leading sales by brand is Toyota Motor Philippines Corp. — selling 16,449 units last month and accounting for 46.95% of total vehicle sales. It registered growth of 5.8% over the 15,541 vehicles sold in October this year. In second place is Mitsubishi Motors Philippines Corp. (MMPC), which moved 6,026 vehicles in November (up by nine percent month on month from 5,527 units in October). MMPC’s market share is 17.2%.

Ford Philippines holds third place with 2,805 units sold in November, up 16.8% over the 2,401 units sold in October; market share is eight percent. Suzuki Philippines is fourth for the month with 1,951 vehicles moved (+15.3% vs. 1,692 sold in the previous month), and mustered 5.57% of the market by volume. Completing the top five is Isuzu Philippines Corp., which sold 1,779 vehicles in November (+7.9% vs. 1,648 units in October), and cornered five percent of the market.

“The automotive industry underscores the importance of pent-up demand from consumers supported by continued economic recovery, boosting business and consumer confidence. These, alongside the containment of the pandemic, are significant factors toward sustained growth,” concluded Atty. Gutierrez. — Kap Maceda Aguila

Photographs of photographs embellish Jo Ann Bitagcol’s new fashion line

JO ANN BITAGCOl’s Creations

ONCE one of the country’s most wanted models, Jo Ann Bitagcol transitioned to working behind the lens in the early 2000s. In Rhett Eala’s new concept store in Greenbelt, her past, present, and future all meld together in a clothing line.

Asked during the opening to count her years working, she said, “Sh*t. I don’t know, because I still model now for special projects.” She counts her start in modelling to 1996 (according to a story from the Philippine Star, she had one of those legendary discovery stories, being spotted in a place that sold pancit). This is how she counts the years of her career: “In front (of the camera), it’s maybe around eight years. Behind — that’s a lot of years,” she said. “Let’s just say more than 20 years.”

Her clothes are made of pictures of clothes on clothes: during the pandemic, she was photographing Filipiniana clothes for a book project. She also gained access to the archives of Gino Gonzales (a well-known theater designer who was one of the creators behind the book Fashionable Filipinas), which she also photographed. Using her outtakes (which were supposed to be just for her own archives), these photographs were converted into digital art, then printed onto silk. These in turn became scarves, tops, and even her own version of a barong (a print of a barong on a tunic). Two cycles of photographs (one was a collection of ternos; the other, antique barongs and handkerchiefs) formed two collections.

During the opening of Rhett Eala’s store on Dec. 6, there was a certain edginess to her look. She combined an embroidered Rhett Eala T-shirt, worn back-to-front, and used one of her printed pullovers as a skirt. “That’s how I want my pieces also: worn several times, and in different ways. All body shapes and types can wear it, and all ages can relate to it as well,” she said. A gray pearl pendant rested at the base of her throat, accompanied by a strand of more classic white pearls.

The printing is done abroad, but the line is produced here.

“I only have one mananahi (seamstress),” she said. “That’s why my production is so small.” For example, if one likes a certain print, one can choose to have it framed, or worn as a scarf. This will then be hand-hemmed, which she says takes hours to do because the material is so fragile.

Not many women like her can boast of working on both sides of the camera. “This is all now the fruit of all my resources as a model, and then being in the fashion industry as a photographer, and working with a lot of creative designers,” she said.

“I’m happy. I was able to transform and translate my ideas to how I want it.” — Joseph L. Garcia

Getting your finances ready for the holidays

VISITORS are seen enjoying the lights and displays in a drone shot at the newly opened Candy Land Christmas village in Tabaco City, Albay. — PHILIPPINE STAR/ EMMAN CAMU

By Bernadette Therese M. Gadon, Researcher

“IT’S MORE expensive now. Our grocery expenses before reach P1,500, it doubled now because of the price,” Kaye Nana, a self-employed mother of one, said during an interview, discussing her monthly expenses.

Ms. Nana, 29, has an online store selling toys and an online marketer selling products. She said her family brings in around P15,000-P30,000 income monthly, while her expenses reach P15,000-P20,000 a month.

Some months, she and her husband only have enough to pay for their expenses and necessities, with the rising prices of goods and commodities, she expressed her thoughts on how she manages the family’s finances to keep them afloat monthly.

The country has been experiencing higher costs of goods and services this year as the economy bounced back from the coronavirus disease 2019 (COVID-19) pandemic restrictions, and the Russia-Ukraine conflict that started in February 2022, which sky-rocketed fuel prices this year. This led to higher inflation and currency depreciation across the globe and the Philippines was not spared from the effects.

Preliminary data from the Philippine Statistics Authority (PSA) showed the general increase of prices of widely used goods and services surged to 8% in November. This was the highest inflation rate in 14 years, a level not seen since the Global Financial Crisis.

Year to date, this put the average inflation at 5.6%, above the 2-4% target range but still below the 5.8% forecast by the Bangko Sentral ng Pilipinas (BSP).

This prompted the BSP to hike rates to control inflation. The central bank has raised a total of 350 basis points (bps) this year, with the latest 50-bp rate hike on Dec. 15.

Moreover, the aggressive tightening of the US Federal Reserve (US Fed) has led to the record low depreciation of the peso in the latter part of the year. Starting last August, the peso fluctuated between P56 and P58 against the greenback. The Philippine peso hit its record low of P59 to a dollar on Oct. 17.

While some are benefiting from the lower peso, others are feeling the effects in their daily lives.

“For our export industry, a weaker peso used to be favorable for the export industries,” Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) President Danilo C. Lachica said in a Viber call interview.

“We would see about a one to one and one-half percent increase in exports for every peso devaluation, but because of the price pressures caused by the geopolitical and economic factors, that upside has been wiped out,” Mr. Lachica said.

Mr. Lachica said that importing products dents the economy through draining dollar reserves and suggested that localizing parts can help in reducing expenses and relying on other factors such as monetary exchange rates.

The country’s gross international reserves as of end-November amounted to $93.95 billion, preliminary data from the BSP showed. This was 12.8% lower from the year-ago level and can cover 7.5 months’ worth of imports.

Another preliminary data from the PSA showed trade in goods deficit narrowed to its lowest in 17 months to $3.31 billion in October as exports surged while imports eased.

“The advantage we have for the devaluation of the peso has been wiped out by the increase of local costs as well as the price of imported materials. that’s why that’s a motivation also for doing parts localization,” Mr. Lachica said.

“We don’t really have a choice because the choice is to stop production, which is not really an option, so we just have to bear with this challenge to absorb the costs,” he added.

Mr. Lachica said some companies carried the weight of higher costs, reduced the margins, or passed the increase to their customers.

“But, more often than not, it’s improving productivity, reducing internal costs instead of passing it on to the customers but there are situations where it’s difficult for you to do that. Especially when you have skyrocketing material prices,” he said.

Another commodity that Filipinos have felt the brunt of high prices is fuel. According to the Department of Energy, gasoline prices averaged P69.82 per liter in November 2022, 8.8% higher than the P64.16-per-liter average a year ago.

Diesel and kerosene surged to P75.87 (up by 47.4%) and P79.83 (up by 46.9%) per liter in November from P51.47 and P54.33 per liter in 2021, respectively.

Ms. Nana said her family pay double the price for a full motorcycle tank. While they still use it on the same basis as last year, they pay around P300 for a full tank now compared with P180 before.

While industries and consumers tried to come up with ways to manage their finances amid growing prices, the country’s central bank also has contingencies ready to keep the peso from skyrocketing further than what we can handle.

In an interview with the Philippine central bank, it expects the financial landscape to continue this trend for the rest of the year as the US Fed maintained its hawkish stance amid the rising global inflation.

“Nonetheless, the Philippine financial system is expected to remain resilient as the BSP continues to adopt enhanced and forward-looking supervisory frameworks and policy reforms to ensure that the banking system stays resilient. Against this backdrop, the BSP remains prepared to take all necessary policy actions to bring inflation back to the 2-4% target,” the BSP said in an e-mail.

The Philippine National Bank Research said in a separate e-mail interview that inflation will likely accelerate to an average of 7.9% in the last quarter of the year.

Exchange rates will likely remain volatile for the rest of the year due to the US Fed’s stance. PNB Research gave an estimate of the peso closing within P57-P60 range by end-2022.

CURB HOLIDAY SPENDING
With the upcoming holiday season, how will Filipinos achieve the silver lining between higher prices and be able to celebrate the holiday season?

Ms. Nana said that compared with last year when she had extra money to prepare for the holidays, this year she started to save up a few months early to have money to spend for the holidays.

“I find it hard to look for funds. I’m pushing to sell more products, unlike before where I have extra money that I can work with,” she said.

“Now, I’m asking him [my husband] for help. I’m telling him that I can’t shoulder this time and if he could shoulder it this time,” she said.

The BSP gave a few tips on how to manage one’s finances for the holidays: Set a spending limit; be creative in gift-giving; and set aside a certain percentage of your Christmas or year-end bonuses as savings.

The BSP said creating a budget for gifts, food, decorations, and family vacations will help in making sure you are on top of your expenses. Gift-giving, a custom by Filipinos didn’t need to hurt a wallet by being creative in either giving personalized or hand-made products that gives a deeper connection between the giver and receiver.

“Alongside the festivities, the influx of money in the form of company bonuses may tempt people to go on a shopping frenzy. Stop yourself from giving in to instant gratification by consciously allocating a portion of your bonuses to your savings (following the formula: Income – Savings = Expenses). Remember that you still need to keep your personal financial goals in check amidst the holidays. A fully funded emergency fund can also be a nice gift to yourself,” the central bank said.

Lexus models now available for lease via Kinto One

Lexus IS 350 F-Sport — PHOTO FROM LEXUS PHILIPPINES

SELECT LEXUS MODELS (the ES, IS, NX, and RX) are now available for lease through Kinto One. The full-service vehicle lease package offers those who dream of having a Lexus the chance to enjoy one with a hassle-free, worry-free “usership” experience.

Kinto One promises to provide value for money with “all-inclusive, monthly payment packages which cover periodic maintenance, normal wear and tear parts replacement, annual comprehensive insurance, annual registration, and exclusive Kinto concierge service.”

Users may “own” a Lexus for three or four years, with different mileage options and packages starting at P70,964 a month. Customers can now savor the luxury of a Lexus with the convenience of a full-service lease.

The Lexus ES midsize sedan starts at P81,994 a month. The interior and exterior are showcases of detail and craftsmanship that set the bar for what a luxury sedan should be. It boasts of a human-centered cabin, a coupe-like silhouette, advanced passive and active driver-safety technologies, and an innovative infotainment system.

The Lexus IS sport sedan can be had at P72,974 a month. Developed and honed at the Shimoyama Technical Center Test Track — where the toughest and most challenging roads in the world have been recreated — every facet of its performance has been shaped to “(deliver) an experience like no other to drivers around the world.”

Lastly, the Lexus NX luxury crossover, which starts at P70,964 a month, boasts generous interior legroom — with the distance between the NX’s front and rear seats measuring a class-leading 962mm. It is available with either a hybrid powertrain or a turbocharged petrol engine.

Kinto One is a product of the Toyota Financial Services Philippines Corp. and is supervised by the Bangko Sentral ng Pilipinas. For more information, visit the Lexus website at lexus.com.ph or Facebook (@lexusph) and Instagram (LexusPhilippines). Download the MyLexus app available for both Android and iOS users to receive live updates and access other premium services.

MPTC finalizing plan for NLEX-Cavitex Port expressway

METRO PACIFIC Tollways Corp. (MPTC) will be studying the viability of the NLEX-Cavitex Port Expressway Link project, which may cost more as construction of a tunnel is needed, an official said.

“We are finalizing the technical study, and we will assess the viability based on the numbers from the technical design,” MPTC Chief Financial Officer Christopher Daniel C. Lizo told BusinessWorld recently.

The 15-kilometer (km) expressway project, which will run from North Luzon Expressway (NLEX) Segment 10 to Manila-Cavite Expressway (CAVITEX), is expected to provide an ideal truck route directly linked to Manila Port Area.

The P92-billion project has three sections: the 5.7-km C3 Road to Anda Circle, the 4.8-km Connection from CAVITEX to Buendia Ave., and the 4.6-km Buendia Ave. to Anda Circle.

“This may take time as there are many challenges because the port expressway project will pass by the US Embassy and Manila Bay,” Mr. Lizo said in a mix of English and Filipino.

“You cannot obstruct the view and there are more security requirements if there’s an embassy,” he added.

He also noted that a tunnel will be needed, which means that the company will also have to set aside a budget for the purchase of a tunnel-boring machine.

“It’s a technical problem. As it gets more complex, it gets more expensive,” Mr. Lizo said.

The project is a joint unsolicited proposal submitted by NLEX Corp. and Cavitex Infrastructure Corp. to the Department of Public Works and Highways (DPWH) in 2019.

NLEX Corp. said in April that it was awaiting approval from the Toll Regulatory Board for the implementation of the first section of the proposed project.

The NLEX-CAVITEX Port Expressway Link project, once completed, is expected to “stimulate development in Manila, Caloocan, Malabon and Navotas, as well as its surrounding areas,” the DPWH said on its website.

It is also seen to decongest Metro Manila traffic, give trucks a 24/7 alternative route and resolve truck-ban problems, provide better access to Manila ports (North Harbor) and airports (Ninoy Aquino International Airport and Clark airport), and complete the connection of NLEX with South Luzon Expressway (SLEX).

The project is expected to reduce travel time from SLEX to NLEX to just 20 minutes from two hours, reduce travel time from Clark to Calamba to one hour and 40 minutes from approximately three hours, and benefit at least 35,000 motorists or vehicles per day.

NLEX Corp. is part of MPTC., the tollway unit of Metro Pacific Investments Corp. (MPIC).

MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Adidas reports ‘extraordinary’ demand for Argentina jerseys

LIONEL MESSI (third from left) during FIFA World Cup Qatar 2022, Nov. 26. — NAOKI MORITA/AFLO SPORT VIA REUTERS

AS LIONEL Messi dreamed of getting his hands on a maiden World Cup trophy in Qatar, his fans struggled to get theirs on jerseys of the Argentina team as sportswear giant Adidas grapples with a global shortage of stock due to the extraordinary demand.

Ahead of Argentina’s World Cup final against France on Sunday, German sportswear maker Adidas said the high demand for Argentine kits and knockoffs making their way into local markets has prompted them to explore plans to boost their production ahead of what could be a massive celebration.

“Due to extraordinary demand for the Adidas Argentina World Cup jerseys across the globe, we have very low stock in some countries,” a spokesperson for the brand told Reuters.

“We are working to get more jerseys to fans so they can celebrate an incredible journey for the national team.”

Argentina was the only Adidas-sponsored team to advance beyond the last 16 at the tournament in Qatar. Yet the company is experiencing higher demand compared to the 2018 World Cup in Russia, according to the spokesperson, who added that its football sales have grown by 30% this year. Earlier this month, Adidas reported that the brand would stick to its sales outlook for the tournament — €400 million ($424.12 million) — despite Germany’s shock exit in the group stage and having only three of its seven sponsored teams in knockout stages. — Reuters

PAL to study Manila-Brussels direct flights

PHILIPPINEAIRLINES.COM

PHILIPPINE Airlines, Inc. (PAL) is studying possible direct flights to Brussels after President Ferdinand R. Marcos Jr. met with Belgian airport executives last week, according to the flag carrier’s spokesperson.

“We will work with the government in studying possible options to assess the viability of any future EU (European Union) operations,” PAL Spokesperson Cielo C. Villaluna said in a Viber message when asked to comment on the idea of direct flights to Belgium.

Arnaud Feist, chief executive officer of the Brussels Airport Company, told the Philippine president last week that direct flights would be a “win-win” for both countries as it would increase travel options among tourists from Western Europe and Southeast Asia.

Mr. Marcos backed the proposal, saying it would make more areas accessible for both foreigners and Filipinos.

“When we talk about Brussels, in our mind, it’s really Western Europe because, very clearly, Brussels is the center of that. And that is something of great interest,” he told Belgian airport officials.

The president was accompanied by House Speaker Ferdinand Martin G. Romualdez, Senator Mark A. Villar, and officials from the Department of Trade and Industry, the Department of Transportation, and PAL.

Stanley K. Ng, president and chief operating officer of PAL Holdings, Inc., said in the same meeting that direct flights to Belgium could increase economic activity in the Philippines. PAL Holdings is the listed company that operates Philippines Airlines.

In October, Mr. Ng. said the country’s flag carrier is expected to make a full recovery in domestic sales and reach 70% of pre-pandemic levels in international sales by this month.

PAL made $1.1 billion in revenues in the first half of the year, which translates to a growth of 258% in passenger revenues and 31% in cargo revenues from the same period last year.

European airlines have posted increasing profits during the northern hemisphere summer from June to August as people took advantage of traveling without pandemic restrictions.

“We look forward to exploring opportunities for direct flights to the European Union,” Ms. Villaluna said, citing what was discussed by the Philippine government with Belgian authorities during Mr. Marcos’ Brussels visit. — John Victor D. Ordoñez

AVID set to respond to ‘consumer calls for mobility solutions’

PHOTO FROM AVID

THE ASSOCIATION of Vehicle Importers and Distributors (AVID) recently held its official meeting, followed by its traditional “Landscape Industry Forum” for the year. Mondriaan Group Partner Gerrit W. Kuyntjes discussed post-pandemic challenges and opportunities in the automotive industry, while Embiggen Group Head of Business Development Marrione Pol Camacho shared projections on current and future trends in mobility.

Department of Energy Undersecretary and Director of the Energy Utilization Management Bureau Patrick T. Aquino capped the session by reporting on the status of the country’s road map for the electric vehicle industry.

Said AVID President Maria Fe Perez-Agudo, “We are back together as AVID, the true and relevant voice of Philippine auto importers. Counting on the strength of our individual brands and strong demand, we are here ready to heed and respond to consumer calls for mobility solutions that best suit the need of the times.” AVID is a private, nonstock, nonprofit business association founded in July 2010. Its membership consists of 18 leading auto companies representing 19 global brands. The group advocates for the effective management of diverse commercial, consumer, and legislative aspects that affect the Philippine automotive industry and the Philippine economy.

AVID was established as a response to the need to accelerate government and private enterprise initiatives toward improving industry competitiveness. It partners with a growing network of industry experts from government and the private sectors to provide reasonable and objective information about free and fair competition and consumer welfare. The association said this is how it “makes significant contributions to assisting policy makers in crafting a system of laws and regulations to advance the local and global competitiveness of Philippine businesses.”

Agri tech transfer seen critical for realizing benefits of RCEP

PHILIPPINE STAR/ MICHAEL VARCAS

By Kyle Aristophere T. Atienza, Reporter

THE agriculture industry must harness the technology transfer opportunities if it is to fully take advantage of the Regional Comprehensive Economic Partnership (RCEP), an agriculture analyst said. 

“Beyond 2023 until 2025, the Philippines can open up its economy more by participating in freer trade agreements like RCEP. For as long as it is prepared to harness technology transfer in all possible fronts especially in agriculture, a freer trade regime is good for the (industry),” Roy S. Kempis, a retired professor at the Pampanga State Agricultural University, said in a Viber message.

“Our farmers and agribusinessmen have to learn how technology can improve their productivity,” he added.

Agriculture accounts for about a 10th of Philippine gross domestic product (GDP). Agriculture output contracted in the first two quarters of 2022 but expanded 1.8% in the third quarter.

Of particular concern was the capacity to bring the cost of production to at least level with other countries, Mr. Kempis said. “The idea is to scale up (initially), to achieve sufficiency, and eventually to be able to export what is not needed domestically.”

RCEP is a free trade agreement involving the 10 members of the Association of Southeast Asian Nations (ASEAN) and dialogue partners China, Japan, South Korea, Australia, and New Zealand. 

“With RCEP being ASEAN-based, the Philippines has a platform for extending free trade agreements to non-ASEAN blocs,” Mr. Kempis said. “The country can make itself attractive not only for mutually beneficial trade, but also for needed investments from foreign governments and businesses.”

The Senate failed to ratify RCEP earlier this year, with senators citing the lack of safeguards for the agriculture industry.

RCEP is viewed as a means for China to minimize US influence in the region. As a counter, the US has offered the Indo-Pacific Economic Framework (IPEF), a bid to achieve greater economic integration.

Trade Secretary Alfredo E. Pascual said in July that participation in the RCEP was a government priority. President Ferdinand R. Marcos, Jr. who is concurrently Agriculture Secretary, has said that after a review, he requested that the Senate ratify the trade agreement.

Mr. Kempis said the key for the Philippines is to obtain more investment in research and development to boost farm productivity, and to set up more processing facilities to preserve the harvest, develop the cold chain, add to the logistics and distribution network, and to innovate in the marketing of its produce.

“With President Marcos (expressing a preference for) an investment-led regime (to create) jobs, improving job quality, and generate decent incomes. this in turn will in turn perk up consumer appetite,” Mr. Kempis said. “This cycle when repeated will be good for the economy and well-being of the majority of, if not all Filipinos.”

Style (12/19/22)

LOOK Store opens in SM Mall of Asia

THERE’s a new destination in town for makeup fans and beauty enthusiasts: the LOOK Store at SM Mall of Asia (MOA) in Pasay City. There are more than 70 makeup, skincare, hair and nail care, and fragrance brands to choose from at LOOK, including cult brands like Drunk Elephant, Augustinus Bader, Tom Ford, La Mer, Laura Mercier, Jo Malone, and Shiseido. There are in-store experiences such as skin consultation by La Mer, the nail bar by Barry M, hair analysis and hair styling by Aveda, brow services by Benefit, makeover by NARS, Estee Lauder, and Make Up forever. LOOK has beauty experts who are happy to provide personalized tips as well as more information about the variety of products offered in the store. The LOOK Store is located at 2F SM Mall of Asia, South Wing, Main Building. For more information, visit www.lookatme.com.ph.

Penshoppe’s Holiday Edit collection

FASHION brand Penshoppe has just released its Holiday Edit collection so mixing and matching for holiday events is easy. Its must-haves for a festive look this season include satin, dressy tops, and cozy jackets. There is a cropped fleece cardigans that comes with a top, the perfect set to keep warm and looking pretty; heeled sandals that go well with the dresses; denim shorts, straight-leg or slim jeans, as well as statement tops. These pieces are available online and in select Penshoppe stores.  With Penshoppe’s Shop Online, Pick-up in Store option, shoppers can order online and pick up the items at any participating branch of their choice. Check out the latest from Penshoppe, visit https://www.penshoppe.com/.   

adidas Basketball unveils the 2023 collection

ADIDAS Basketball has unveiled The 2023 Collection: Chapter 01, the first of the brand’s series of premium offerings. The collection features an array of luxury sportswear apparel in a muted palette, ranging from premium sweats, track pants, sleeveless shirts, shorts and more. The collection is designed to consider effortless form and function while delivering on a style versatility – on and beyond the court. The 2023 Collection: Chapter 01 arrives in Halo Green, Metal Grey and Cloud White, available for purchase on the adidas App and at https://www.adidas.com.ph/chapters-basketball, retailing from P1,700 to P5,200.

The Montblanc Star Legacy

FROM the fields of Paris’s Champ-de-Mars horse racing track to the wrist, Montblanc continues to reinvent its Star Legacy Nicolas Rieussec Monopusher Chronograph. The story started on Sept. 1, 1821 at Paris’s Champs-de-Mars horse racing track where Nicolas Rieussec was testing one of his latest inventions, a timekeeper designed to record the precise times of all the horses as they crossed the finish line. Rieussec became the inventor of the world’s first inking chronograph, marking the history of fine watchmaking. Fast forward to 2007, Montblanc unveiled a wristwatch version of Rieussec’s technology, featuring its first in-house movement. Over the years, Montblanc has presented an array of different iterations of the design with different materials, finishings, and colors. This year, this classic timepiece has been given a new contemporary look with several details that reinforces the historical Paris connection, where the story first began, and take the model firmly into the future. There are two new interpretations of this timepiece — one in stainless steel, and the other in DLC-coated stainless steel (limited to 500 pieces). Both come in a new ergonomic pebble-shaped case measuring 43mm in diameter (the previous size was 44.8mm) with blue details that recall the color of ink — as a nod to the original device — and an onion-shaped crown. There are a number of elements that celebrate Paris: a graphic Clous de Paris motif on the dial (replacing the previous Grain d’Orge design) which is continued onto the textile strap and the oscillating weight; open-worked indexes; dynamic dauphine hands with Super-LumiNova1; dark grey baton indexes, a new typography on the chronograph counters; a black, semi-transparent sapphire crystal on the case back; blued screws on the dial and movement, and strong color contrasts between the anthracite grey and electric blue. Completing the Paris connection, a mention of the “Academy of Sciences, Paris” is engraved on the flange, as a reminder that the academy validated Rieussec’s invention in 1821. The name “Chronographe Nicolas Rieussec” is also engraved at 12 o’clock. The Montblanc Star Legacy Chronograph Nicolas Rieussec is powered by the self-winding Manufacture monopusher chronograph movement MB R200 that was the very first in-house movement by the Maison. Montblanc is available at Rustans Makati, Rustans Shangri-La, Rustan’s Cebu, Greenbelt 5, City of Dreams and Resorts World.

J-beauty holy grails

THOSE sleepless nights and hours spent working overtime, holiday shopping and gift wrapping can show, especially on one’s skin. The Japanese always makes sure they have a face lotion which function as skin conditioners, softening and hydrating it, and even performing a few extras. As the key step to “mochi mochi” skin or skin that is baby-soft, bouncy, and velvety matte (that looks and feels like that popular Japanese dessert), face lotions are full water-pushing humectants like hyaluronic acid to plump up dehydrated skin. One of these is cult fave J-beauty brand Hada Labo. The Gokujyun Hydrating Lotion Rich is Hada Labo’s flagship product that’s been updated with an enhanced formulation. It contains five types of hyaluronic acid to deeply hydrate the skin, replenish optimum moisture, create a moisture-locking shield to prevent moisture loss, and enhance absorption of other skin-care ingredients. This formula also has the world’s first fermented hyaluronic acid which improves its barrier function. The Gokujyun line also offers the Gokujyun Hydrating Light Lotion that has the same hydrating formula as the former, just lighter for oily or combination skin. This is just one of the Hada Labo products that help create the mochi-mochi look. The J-beauty skincare brand is treating shoppers to exclusive promos and freebies: purchase Hada Labo products at The SM Store’s Beauty Section in SM North EDSA from Dec. 29 to Jan. 11 to enjoy these perks. Hada Labo face lotions and other products are available at Watsons and Zalora, and through the official Mentholatum store on Lazada and Shopee. For more beauty and skincare tips, visit hadalabo.com.ph and follow @HadaLaboPH on Facebook and Instagram.

Max Mara launches in the Philippines

MAX MARA has opened its first store opening in the Philippines in Greenbelt 3, Makati. The opening showcased the latest collections, including the Max Mara mainline, S Max Mara, and its selection of accessories, as well as its iconic coats. Max Mara coats, such as the Manuela, the 101801, the Ludmilla and the Teddy are collected by the best dressed. The store features vaulted ceilings and a skylight, and the interiors are a well-balanced mix of strain gré, brass, metal, oak wood, and colorful marble which create a welcoming atmosphere across the main area, which is centered by a column in raw stone. Sophisticated furnishings from leading Italian design brands make the new store evoke Max Mara’s fundamental brand values of Italian craftsmanship and timeless construction.

Bench partners with UnionBank on store digital payments

UNION Bank of the Philippines (UnionBank) has partnered with Suyen Corp. (BENCH Group) to help the clothing and lifestyle brand digitize payments in its more than 800 brick-and-mortar and affiliate stores all over the country, for easier and more convenient transactions for its customers. The contract between UnionBank and BENCH was signed on Nov. 14 at the UnionBank Plaza in Pasig City. To help BENCH digitize its transactions, UnionBank will be generating in-store QRPH codes that will serve as additional payment channels for shoppers. This will allow them to quickly pay for their purchases without worrying about loose change. They also won’t need to use their on-hand cash or fall in line to withdraw cash at ATMs, saving them time. Because the partnership leverages QRPH’s wide range of accepted payment providers through partner banks and popular digital wallets, shoppers can pay for their purchases digitally without worrying about using services or apps they are not familiar with, and simply opt for those that they are already using. “We believe that the use of QRPH in our offline stores should bring many benefits and convenience to our customers,” said Vice President for Business Development Group of BENCH Bryan Lim.

Brother concept store opens in SM Fairview

BROTHER International Philippines Corp. recently opened the company’s fifth concept store in the Philippines at the 3/F Cyberzone in SM Fairview, Quezon City. The concept store will carry the complete range of Brother products, which includes printers, scanners, labeling machines, cutters, and sewing and embroidery machines. Shoppers will also enjoy special holiday promos and discounts. “The Brother concept store is part of our commitment to giving shoppers an improved shopping experience. They can see the complete range of products, interact with the different features, and get recommendations from our experienced staff,” said Glenn Hocson, President of Brother International Philippines Corp., in a statement. Aside from the SM Fairview branch, Brother concepts stores are located in Gaisano Mall, Davao; SM City North EDSA Annex; Limketkai Center, Cagayan de Oro City; and SM City Cabanatuan, Nueva Ecija. For more information, visit the Brother Facebook page or call the Brother Helpdesk Hotline at (02) 8 581-9898.

Solving crimes in the financial landscape: A Q&A with Tookitaki

By Lourdes O. Pilar, Researcher

“REDEFINING financial crime compliance to make the world a better place.”

Following the company’s motto, Tookitaki’s initiative of breaking silos and providing a platform to collaborate and fight financial crime, the company expanded their business in the Philippine market to bring scalable and machine learning-powered product offerings to help financial institutions address money laundering risks.

Tookitaki (a Thunes company) is a regulatory technology company offering financial crime detection and prevention solutions to some of the world’s leading banks and fintech companies to help them transform their anti-money laundering (AML) and compliance technology needs.

Founded in November 2014, the company employs over 100 people across the US, the UK, Singapore, Taiwan, Indonesia, the Philippines, and the UAE.

To know more about Tookitaki and its approach in providing end-to-end financial crime solutions to some of the world’s leading financial institutions, BusinessWorld reached out to Tookitaki’s Chief Executive Officer and founder Abhishek Chatterjee to share his thoughts and insights. Below is the excerpt of the interview:

Please introduce us to Tookitaki. What are your visions and goals?

Mr. Chatterjee: Headquartered in Singapore, Tookitaki provides end-to-end financial crime solutions to some of the world’s leading financial institutions. In the ASEAN region, some of the largest banks and fintech companies rely on Tookitaki to transform their AML compliance needs. Tookitaki was founded in November 2014 and employs over 100 employees across our offices in Asia, Europe, and the US.

Fighting financial crime needs to be a collective effort through centralized intelligence-gathering. Aimed at breaking silos, the AFC (anti-financial crime) Ecosystem, includes a network of experts and provides a platform for the experts to create a knowledge base to share financial crime scenarios.

This collective intelligence is the ability of a large group of AFC experts to pool their knowledge, data, and skills to tackle complex problems related to financial crime and pursue innovative ideas.

The AFC ecosystem is a game changer since it helps remove the information vacuum created by siloed operations. Our network of experts includes risk advisers, legal firms, AFC specialists, consultancies, and financial institutions from across the globe.

Tookitaki’s AML Suite (AMLS) is an operating system comprising four modules, such as transaction monitoring, smart screening, customer risk scoring, and the Case Manager, under one roof to address our customers’ compliance requirements. It provides holistic risk coverage, sharper detection, and significantly fewer false alerts. It can be deployed in multiple environments including the public cloud, private cloud, and data center.

The AFC Ecosystem and the AMLS work in tandem and help our stakeholders widen their view of risk from an internal one to an industry-wide one across organizations and borders. Moreover, they can do so without compromising privacy and security.

Tookitaki means to hide and seek in Bengali. The name perfectly articulates our intention to uncover the hide-and-seek nature of financial crime with artificial intelligence.

Today, Tookitaki (A Thunes company) is leading AML initiatives in most of the key digital banks in Asia. One of the largest digital banks in the Philippines, one of the world’s largest fintech and payment companies headquartered in China, one of Asia’s largest digital banks based out of Singapore, and one of the fastest-growing crypto wallets based out of Asia.

Tookitaki’s innovations in regulatory compliance have been acknowledged worldwide. Chartis Research named the company a Rising Star in its 2021 RiskTech 100 report. In 2020, the company won the Regulation Asia Awards for Excellence and G20TechSprint accelerator. In 2019, the company was featured in the World Economic Forum’s Technology Pioneer List.

What products and services do you plan to offer in the local market, and how would you differentiate Tookitaki from other vendors providing AML compliance solutions? What makes it “innovative” in addressing a regulatory or market need?

Mr. Chatterjee: At Tookitaki, we have always believed that technology is for the greater good. The AFC Ecosystem is a community-driven first of its kind initiative aimed at breaking silos and providing a platform to collaborate and fight financial crime. The AFC Ecosystem’s single motto is to break silos and provide a platform where AFC experts across the globe can use their knowledge and expertise to build a safer society.

The AFC Ecosystem is a game changer since it helps remove the information vacuum created by siloed operations. Our network of experts includes risk advisers, legal firms, AFC specialists, consultancies, and financial institutions from across the globe.

Underpinning it is a valued partnership program that is mutually beneficial for all stakeholders engaged in reducing the laundering of illicit proceeds of crime and terrorism.

Tookitaki’s offerings in the Philippines primarily include the AFC Ecosystem and the AMLS.

Our community comprises of experts covering the entire spectrum of money laundering: placement, layering, and integration. They include Financial Crime Compliance (FCC), law enforcement, and nongovernment organizations to name a few who are all giants in their own right. With this diverse community approach, financial institutions, who are the first line of defense, are empowered to identify “dirty money” patterns that aren’t easily discoverable. Operationalizing this collective intelligence results in the creation of more comprehensive risk policies.

Tookitaki’s AMLS covers the entire customer onboarding and ongoing processes through its transaction monitoring, smart screening, customer risk scoring, and the case manager. Together they provide holistic risk coverage, sharper detection, and significant effort reduction in managing false alerts. It is uniquely designed to complement existing systems by cutting through the noise and clutter generated by large volumes of alerts in legacy transaction monitoring processes.

For our customers like traditional banks and fintech companies, an extensive understanding of their consumers is a must for effective and comprehensive risk policies. The AMLS is a product that enables this through the combination of its Intelligent Alert Detection (IAD) for detection and prevention along with its Smart Alert Management (SAM) for Management.

With technology touching every facet of society, money mules and fraudulent accounts are a growing problem that needs to be addressed to assist in the country’s efforts to prevent financial crime, notably in the government sector. Tookitaki aims to improve the honesty of the Philippines’ financial market through AML compliance solutions aimed at fintech companies, which include payment service providers, e-wallet providers, and virtual asset service providers.

Please elaborate more on Tookitaki’s Anti-Money Laundering Suite or AMLS and how it would apply to banks.

Mr. Chatterjee: Tookitaki’s AMLS covers the entire customer onboarding and ongoing processes through transaction monitoring, smart screening, customer risk scoring and the case manager. Together they provide holistic risk coverage, sharper detection, and significant effort reduction in managing false alerts. It is uniquely designed to complement existing systems by cutting through the noise and clutter generated by large volumes of alerts in legacy transaction monitoring processes.

As mentioned earlier, our AMLS has two main functionalities: IAD and SAM.

The SAM functionality of AMLS specifically helps banks with:

• management and filtering of false alerts

• ease of integration into their current process governance

• operational guidance from past learnings with other banks

Based on our previous customer case studies, we can say that when customers start using the SAM module, they can expect a RoI (return of investment) in approximately nine months and along with that we deliver a superior experience via:

Operational efficiency through alert prioritization

SAM across transaction monitoring and screening helps in automated triaging and helps categorize all alerts into three risk levels: L1 (Low risk), L2 (Moderate risk), and L3 (High risk).

Hence, as part of the alert handling/treatment process, there is no requirement for manual triaging since all alerts have been triaged by SAM into the aforementioned risk levels.

Faster time to market

SAM automatically builds a machine learning (ML) model that trains on customer data. The model result aligns with customer risk policy and data instead of a generic industry ML solution. The in-built Intelligent risk indicator framework automatically generates thousands of risk indicators (data science features) from input data.

An intelligent model learning framework then selects the most relevant risk indicators and chooses the right hyper-parameters to tune the model to achieve high accuracy at optimal compute cost. This is a fully automated process that requires minimal data science effort from the client team.

Continuous improvement

Through our Champion-Challenger which learns from investigator feedback and changing data, continuous improvement occurs systematically. It takes in incremental data, which includes new customers, accounts, transactions, and the latest investigator feedback, and provides consistent results through continuous learning.

Ease of integration into the current process governance

The module integrates seamlessly with the existing systems as well as the primary using standardized data models and ready adapters. Investigators can still use the existing workflow and click on the link to access alert information. This makes it easier to investigate and dispose of alerts faster.

Apart from AML solutions, what other financial crimes does Tookitaki solve?

Mr. Chatterjee: Tookitaki believes in giving back to society. We are on a mission to improve lives by tackling money laundering.

Crimes such as human trafficking, drug trafficking, illegal arms deals, and many more are tied to money laundering. Vulnerable people are being affected daily by this corruption. We offer resources, information, and a strong commitment to helping eliminate money laundering and related crimes.

We have worked closely with the survivors of human trafficking to understand the patterns of behavior around these heinous crimes and determine how we can help tackle them. Our work in this endeavor is driven by a responsibility to help make the world a safer place for everyone.

We believe in using technology for the greater good. We want to lead from the front, where crimes such as trafficking and terrorism can be eliminated via the prevention of financial crime.

What are the factors you considered in choosing the Philippines to launch an AML software tool?

Mr. Chatterjee: With the rise of technology, the world is slowly shifting to cashless transactions. According to a study from 2020-2025, cashless transactions are expected to increase by 80% and cross border payments will be valued at $156 trillion. This borderless transaction increases money laundering crimes and allows money launderers to hide in plain sight undetected.

In the Philippines, half of Filipinos own a financial account, as more Filipinos become part of the banking system, financial crimes will become more advanced. Financial institutions need to look beyond traditional tools to solve a sophisticated and growing problem to keep pace with increasing business and regulatory requirements.

The Philippines is in a strategic position because of its rising economy and being the center of international trade and traffic makes it vulnerable to a host of financial crimes and financial terrorism. Moreover, the growing number of money transfers sent by overseas Filipino workers to their loved ones adds to the responsibility of the AMLS.

Do you have data on cases of money laundering in the country?

Mr. Chatterjee: The Anti Money Laundering Report states that the country has always been vulnerable when it comes to money laundering and financial terrorism. It is vital that the country address the growing problem.

What we’ve noticed is that the political landscape in the Philippines is ever-changing. In 2000, the Philippines was placed under the Financial Action Task Force (FATF), falling under its list of Non-Cooperative Countries and Territories due to lack of basic AML frameworks.

The Philippine government enacted Republic Act (RA) 9160 of the Anti-Money Laundering Act of 2001, which preserved the integrity of bank accounts and ensured the Philippines does not become a haven for money laundering activities. As an added precaution, Philippine authorities will assist in transnational investigations to prosecute those found who are found guilty. Since then, in recent years, various laws have amended RA 9160 and various industries involving finances have been added to the existing laws as well as harsher sanctions for those found guilty of money laundering activities. Additional powers were also granted to the Anti-Money Laundering Council and other concerned persons.

The Philippines has returned to the “gray list” as of June 2021. The FATF has commended the country for its continuing efforts to eradicate the threats of money laundering and encourage the country to further strengthen its measures. And we as a trusted partner are pleased to assist the Philippine government with its goal of eradicating and eliminating financial terrorism, no country in the world should be a safe haven for criminals.

Financial institutions are inundated with voluminous false positives and case backlogs that add to costs and prevent them from filtering out high-quality alerts. How does your solution help address this problem?

Mr. Chatterjee: Tookitaki was a pioneer in identifying the use case of ML in AML compliance and our ideas came into reality with our historic partnership with the United Overseas Bank Ltd. (UOB) in Singapore.

In December 2020, we became the first in the Asia-Pacific region to deploy a complete AML solution leveraging ML in production concurrently in transaction monitoring and name screening.

The SAM functionality of AMLS specifically helped with management and filtering of false alerts that eliminated the need for manual triaging since all alerts get triaged by SAM as per categorized risk levels, such as low, medium, and high. Ease of integration into their current process governance thereby making it easier for the investigators to investigate and dispose of alerts faster.

As a result, UOB witnessed 70% reduction in false positives for individual names and 60% reduction in false positives for corporate names. The solution also helped with 50% reduction in false positives with less than 1% misclassification and 5% increase in fileable suspicious activity reports.

This is yet another example of how Tookitaki sets new standards for the regulatory compliance industry’s fight against money laundering.

We have partnered with well-known fintech companies in the Philippines to assist local companies to stay on top of their compliance requirements and we hope to expand our partnership with even more fintech companies in the future.

What do you think are the biggest risks faced by banks being used for money laundering and how do you plan to mitigate or eliminate these risks?

Mr. Chatterjee: Banks need to have a holistic view of money laundering risks and the threat scape across various banking segments such as corporate, retail, and private. Existing static and granular rules-based approaches, which are oblivious to the holistic trend with a narrow and uni-dimensional focus, are not capable of doing the same. Existing rules-based systems produced a significant volume of false positives. These false leads are a drain on productivity as they take significant time and resources to be disposed of. In the AML compliance space, banks are wasting more $3.5 billion per year chasing false leads because of outdated AML systems that rely on stale rules and scenarios and generate millions of false positives, according to research.

Undoubtedly, using limited resources to close off non-material and unimportant alerts is manual and onerous, resulting in huge backlogs for both processes and missed/delayed suspicious activity report filings. Furthermore, the ballooning costs of AML compliance coupled with the high volume of backlog alerts swamp compliance teams and potentially distract them from “true” high-risk events and customer circumstances.

Alert investigation becomes a time-consuming and labor-intensive affair as the compliance team spends significant time gathering data and analyzing it to differentiate illegitimate activities from legitimate ones. Disparate data sources and highly complex business processes add to the difficulty of the investigation team in analyzing the links between parties and transactions.

As mentioned earlier, Tookitaki’s AMLS includes transaction monitoring, smart screening, customer risk scoring, and case management, a centralized investigation solution.

Transaction monitoring looks for suspicious transactions across different systems. It unlocks the power of Tookitaki’s library of typologies to detect hidden suspicious patterns.

Tookitaki’s AMLS generates fewer alerts of higher quality and then segregates them into low, medium, or high-risk alerts so companies can prioritize their investigations. The AMLS also updates regularly to include new money laundering patterns.

Smart screening watches out for high-risk individuals and corporate customers. Tookitaki designed the name screening module to handle a wider range of complex name permutations. To reduce the number of undetermined hits, Tookitaki enriched the module with inference features and additional customer profile identifiers. Tookitaki’s name screening module also reduces false positives, which happens when AML software incorrectly flags a customer as high-risk.

The Customer Risk Scoring module empowers banks in reducing their cost of compliance by providing an actual consumer view. This is backed by dynamic risk assessment that is self-evolving based on consumers’ new financial patterns.

ML models, too, benefit AFC ecosystems. For one, it increases effectiveness in identifying suspicious activities due to its sharper focus on data anomalies rather than threshold triggering. ML models also allow for easier customization of data features to accurately target specific risks, as well as enable extended look-back periods to detect more complex scenarios.

Any other insights you’d like to share?

Mr. Chatterjee: The AFC Ecosystem is now live, which means it is now open to the broader public. The ecosystem has grown considerably over the past few months owing to the active contribution by the experts. The AFC Ecosystem is a strong testament to how technology contributes to the critical mission of helping financial services combat crime and the financing of terrorism. With the ecosystem being open to the public, an AFC Honoree Badge Program has been launched because we believe that together we can make a difference.

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